PDIC raises P40M from closed banks’ assets

The Philippine Deposit Insurance Corporation (PDIC) said on Monday it generated a total of P40.34 million from the sale of assets of closed banks during a public bidding held on February 28.

In a statement, PDIC said the amount raised was P7.66 million higher than the assets’ minimum disposal price of P32.68 million.

The state-run deposit insurer sold residential lots, commercial lots, condominium units with parking slots, a fishpond, and a generator set.

“Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits,” it said.

The liquidation and resolution of assets are strategic directions made by PDIC, as statutory liquidator of closed banks.

To help ensure that recoveries from closed banks’ assets are maximized, PDIC sells assets through competitive auctions. Unsold assets may be acquired by interested parties through a negotiated sale.